Sukanya Samriddhi Yojana Interest Rate

Sukanya Samriddhi Yojana is a government scheme that was launched in the year 2014 by Prime Minister Narendra Modi. Sukanya Samriddhi Yojana interest rate is revised on a quarterly basis. SSY aims to provide financial security to a girl till the time she gets married. The Sukanya Samriddhi Yojana Account can be opened for girl children below the age of 10 years. The account matures in 21 years from the time it has been opened.

For more information, Check out related articles Sukanya Samriddhi Yojana Calculator, Sukanya Samriddhi Yojana Age Limit, Sukanya Samriddhi Account Benefits & SBI Sukanya Samriddhi Account

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Based on the Government Security (G-sec) yields, the Indian Government decides the rate of interest for Sukanya Samriddhi scheme on a quarterly basis. The interest rate is compounded on a yearly basis and is credited to the account. Subscribers can also opt for monthly interest. For a month, the rate of interest is calculated on the minimum balance that is present in the account between the end of the 10th and the last day of the month. For the fourth quarter of the FY2020-2021, the rate of interest was 7.6%.

Year Interest Rate (%)
1 April 2020 – 30 June 2020 7.6
1 January 2020 – 31 March 2020 8.4
1 April 2019 – 30 June 2019 8.50
1 January 2019 – 31 March 2019 8.50
1 October 2018 – 31 December 2018 8.50
1 July 2018 – 30 September 2018 8.10
1 April 2018 – 30 June 2018 8.10
1 January 2018 – 31 March 2018 8.10
1 October 2017 – 31 December 2017 8.30
1 July 2017 – 31 September 2017 8.30
1 April 2017 – 30 June 2017 8.40
1 January 2017 – 31 March 2017 8.50
1 October 2016 – 31 December 2016 8.50
1 July 2016 – 30 September 2016 8.60
1 April 2016 – 30 June 2016 8.60
From 1 April 2015 9.20
From 1 April 2014 9.10

The Government has ensured that the Sukanya Samriddhi Yojana interest rate is lucrative enough for parents to be encouraged to invest more for the future security of the girl child. The interest rate for the financial year 2019-2020 for period between 1 January 2020 to 31 March 2020 was 8.40%. The interest rate pertaining to the current quarter (1 April 2020 – 30 June 2020) is 7.60%, and it is compounded on an annual basis. This is also the best interest rate among other savings schemes, including PPF.

Effectively, the parent gets a competitive interest rate on the Sukanya Samriddhi Yojana Account, in addition to a tax exemption under Section 80C of the Income Tax Act, 1961. There is no other deposit scheme in the country that offers such a high rate of interest, tax exemption, and security for the girl child.

The Sukanya Samriddhi Yojana interest rate change chart is as shown below:

Financial Year Assessment Year Interest Rate (%)
Q1 of 2020-2021 Q1 of 2021 –2022 7.60
Q1 of 2019-20 Q1 of 2020-21 8.50
Q4 of 2018-19 Q4 of 2019-20 8.50
Q3 of 2018-19 Q3 of 2019-20 8.50
Q2 of 2018-19 Q2 of 2019-20 8.10
Q1 of 2018-19 Q1 of 2019-20 8.10
Q4 of 2017-18 Q4 of 2018-19 8.10
Q3 of 2017-18 Q3 of 2018-19 8.30
Q2 of 2017-18 Q2 of 2018-19 8.30
Q1 of 2017-18 Q1 of 2018-19 8.40
Q4 of 2016-17 Q4 of 2017-18 8.50
Q3 of 2016-17 Q3 of 2017-18 8.50
Q2 of 2016-17 Q2 of 2017-18 8.60
Q1 of 2016-17 Q1 of 2017-18 8.60
2015-16 2016-17 9.20
2014-15 2015-16 9.10

The comparison of Sukanya Samriddhi Yojana interest rate with other popular savings instruments such as PPF, RD and FD is shown below:

Scheme Sukanya Samriddhi Yojana Public Provident Fund (PPF) Fixed Deposit Recurring Deposit
Interest rate (FY 2020-21) 7.60% p.a. 7.10% p.a. 3.50% to 8.00% p.a. 5.75% - 8.05% p.a.

SSY Interest Rate Calculation

To explain how SSY interest rate calculation works, here is an example. Mrs. Malvika, the parent of a 3-year old girl child, started investing in SSY from the financial year 2015-16 onwards. The interest rate considered for this SSY calculation is current. Let’s assume that the deposit amount and the date of deposit remain the same for 21 years. She contributes Rs.10,000 on 1 April of each financial year. The maturity amount that her daughter can avail at the end of 21 years is as follows.

Age of the girl child Financial Year (FY) Current Interest Rate (%) as Per the Financial Year During the Year Up to the Year
Deposit Amount (Rs.) Interest (Rs.) Deposit Amount (Rs.) Interest (Rs.) Balance Amount (Rs.)
3 years old 2015-16 9.20 10,000 920 10,000 920 10,920
4 years old 2016-17 8.60/8.50 10,000 1,789 20,000 2,709 22,709
5 years old 2017-18 8.40/8.30/8.10 10,000 2,707 30,000 5,415 35,415
6 years old 2018-19 8.10/8.50 10,000 3,679 40,000 9,185 49,185
7 years old 2019-20 8.50 10,000 5,031 50,000 14,215 64,215
8 years old 2020-21 8.50 10,000 6,308 60,000 20,524 80,524
9 years old 2021-22 8.50 10,000 7,695 70,000 28,218 98,218
10 years old 2022-23 8.50 10,000 9,199 80,000 37,417 1,17,417
11 years old 2023-24 8.50 10,000 10,830 90,000 48,247 1,38,247
12 years old 2024-25 8.50 10,000 12,601 1,00,000 60,848 1,60,848
13 years old 2025-26 8.50 10,000 14,522 1,10,000 75,370 1,85,370
14 years old 2026-27 8.50 10,000 16,606 1,20,000 91,977 2,11,977
15 years old 2027-28 8.50 10,000 18,868 1,30,000 1,10,845 2,40,845
16 years old 2028-29 8.50 10,000 21,322 1,40,000 1,32,167 2,72,167
17 years old 2029-30 8.50 0 23,134 1,40,000 1,55,301 2,95,301
18 years old 2030-31 8.50 0 25,101 1,40,000 1,80,402 3,20,402
19 years old 2301-32 8.50 0 27,234 1,40,000 2,07,636 3,47,636
20 years old 2032-33 8.50 0 29,549 1,40,000 2,37,185 3,77,185
21 years old 2033-34 8.50 0 32,061 1,40,000 2,69,245 4,09,245
22 years old 2034-35 8.50 0 34,786 1,40,000 3,04,031 4,44,031
23 years old 2035-36 8.50 0 37,743 1,40,000 3,41,774 4,81,774

FAQ’s

  1. Is it possible to close the SSY account before maturity?

    2. No, it is not possible to close the SSY account before maturity.

  2. Can a loan be availed on an SSY account?

    3. No, loan facility on an SSY account is not available.

  3. Can a girl child open more than one SSY account?

    4. No, a girl child can have only SSY account under her name.

  4. Is the transfer of an SSY account from one bank to another possible?

    5. Transfer of an SSY from a bank to a post office and vice versa is possible.

  5. Are there any penalties if the subscriber fails to deposit money in SSY account?

    6. A Rs.50 penalty is levied if the subscriber fails to deposit the minimum amount in a financial year.

  6. How long does it take for the SSY account to mature?

    7. An SSY account matures after 21 years from the date the account was started.

  7. Is the SSY scheme available throughout India?

    8. Yes, an SSY account can be opened anywhere in India.

  8. Should I invest in SIP or Sukanya Samriddhi Account?

    9. Since the investment period for a Systematic Investment Plan (SIP) and the Sukanya Samriddhi Account are long-term, there have been many a debate on which is the best investment channel to avail maximum benefits in the future.

    SIP is a method of investing in the stock market through mutual funds on a regular scale, whereas, the investment in SSA is 100% debt-based. When you invest in the stock market for an extended period of time, i.e., more than 14 years, historical data reflects that the returns are huge. These returns not only tackle inflation, but also help your money grow. However, these investments are subject to market risks. In the case of a debt investment tool such as SSA, the interest rate is flexible; so, in the long run, the returns may not be able to meet the inflation and tax. However, the element of risk in a debt-based investment is very low. So, this channel of investment is ideal for individuals who are not willing to endure stock market risks.

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